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US: Dollar General deal would mean more drastic divestitures

By  |  November 19, 2014

As Dollar General continues its efforts to acquire Family Dollar, reports say Dollar General would likely have to offer much more drastic divestitures than originally planned.

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    Dollar General approached Family Dollar shareholders in a hostile takeover attempts after twice being rejected by the dollar store chain. It has offered $9.1 billion for Family Dollar as well as divestitures of 1,500 stores to secure antitrust clearance for the buyout.

    But according to new reports, Dollar General would more likely have to divest upwards of 4,000 locations to gain clearance for the deal.

    Family Dollar, which denied the takeover attempts in favor of a merger with Dollar Tree in the belief that a Dollar General deal would not gain clearance, said in September it was notified that the Federal Trade Commission would be investigating Dollar General’s buyout bid.

    Full content: Reuters

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